Plastic’s pandemic struggles

Many industries have “been strained to the limit” over the past 18 months, says Peter C. Earle. But few “have struggled as mightily... as the resins and plastics sector”. Few of us think much about how these “ubiquitous” fixtures are made. The first wave of Covid-19 vastly increased demand for medical packaging. The medical applications of plastics are “almost endless”, from polyvinyl chloride (PVC) used in tubing and disposable gloves to polycarbonate (PC), which is needed for “high pressure syringes” and “face shields”. Then there is the surge in packaging for online deliveries, which all require “adhesive tape” and bubble wrap. 2021 has brought problems on the supply side. In February power cuts in Texas shut down major parts of the industry. Then in March the one-week blockage of the Suez canal by a container ship hampered trade. Drinking straws and other restaurant paraphernalia became hard to source. The US Producer Price Index of plastics and resins soared by a fifth between the start of 2021 and the end of May. Export prices of PVC tubing almost doubled in a year. Now hurricane season is putting US production capacity in renewed peril. Much plastic is used in retail goods, which “tend to have exceptionally small margins”. When prices rise producers have no choice but to hike retail prices.